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AkzoNobel to invest in Performance Coatings activities in Vietnam

3

● Emery Oleochemicals accelerates bio-based innovations at new $50 million plant 5

● Flint Group expands its Sheetfed production capacity in Russia 6

● Perstorp Polyols Inc. adds Nexeo Solutions, LLC as distributor 7

● PPG introduces coatings platforms to auto parts and accessories manufacturers 7

● Brenntag acquires strong industrial chemicals distribution base across Asia Pacific 8

● GLOBAL MARINE AND PROTECTIVE COATINGS REPORTS FROM IRL 9

Ashland Inc. announces plan to separate into two independent,

publicly traded companies

Ashland Inc. has announced that its board of directors

has approved proceeding with a plan to separate

Ashland into two independent, publicly traded

companies. Today's announcement follows a comprehensive strategic planning review by

the company's global leadership team to better understand Ashland's markets, customers

and the opportunities for each business to create the most value for shareholders,

customers and employees. It also represents the final step in Ashland's more than decade-

long transformation from an oil refiner and marketer to a speciality chemicals company,

during which the company completed dozens of acquisitions and divestitures.

“Ashland is fortunate to have two strong, but distinctly different, business platforms with

attractive growth opportunities and experienced leadership teams,” said William A.

Wulfsohn, Ashland Chairman and Chief Executive Officer. “We believe that separating into

two industry-leading public companies - one focused on speciality chemicals and the other

focused on high-performance lubricants - will generate

significant value for shareholders by

enabling each

CONTENTS

CUBE

728 25 September 2015

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company to focus on its specific business and strategic priorities. For the new Ashland, that

means becoming a 'solutions destination' for a wide range of consumer and industrial

customers through the delivery of value-added technology and world-class operations. For

Valvoline, it means building the world's leading engine and automotive maintenance

business by providing hands-on expertise to customers around the world. Each company will

be a leader in its respective industry, with the capital structure, financial resources and

capital allocation strategies to drive greater revenue and earnings growth.”

The New Ashland

The new Ashland will be a global leader in providing speciality chemical solutions to

customers in a wide range of consumer and industrial markets. These markets are currently

served by Ashland's Chemicals Group, comprising Ashland Specialty Ingredients and Ashland

Performance Materials. Key markets and applications include pharmaceutical, personal

care, food and beverage, architectural coatings, adhesives, automotive, construction and

energy. Together these businesses generated approximately $3.6 billion in sales for the 12

months ended June 30, 2015.

The new Ashland will focus on: driving growth in higher margin, highly differentiated core

product lines where the company helps customers succeed; leveraging the innovation

pipeline by driving new product introductions; optimising the business and product

portfolio; and taking a disciplined approach to capital investment.

Wulfsohn will serve as Chairman and CEO of the new Ashland following the separation,

while Luis Fernandez-Moreno, currently Senior Vice President of Ashland and President of

Ashland's Chemicals Group, will be Chief Operating Officer of the new company. Kevin

Willis, currently Senior Vice President and Chief Financial Officer of Ashland, will serve in the

same capacity in the new Ashland.

Valvoline

Valvoline will focus on building the world's leading engine and automotive maintenance

business by providing hands-on expertise to customers in each of its primary market

channels: Do-It-Yourself (DIY); Installers; Valvoline Instant Oil ChangeSM; and International.

The globally recognised brand, which soon will celebrate its 150th anniversary, generated

sales of $2 billion for Ashland in the 12-month period ended June 30, 2015. Valvoline

currently ranks as the #2 quick-lube chain and #3 passenger car motor oil brand in the

United States. The brand operates and franchises approximately 940 Valvoline Instant Oil

ChangeSM service centres in the United States. As an independent publicly traded company,

Valvoline will focus on growing its network of Valvoline Instant Oil Change stores, leveraging

the Valvoline brand across multiple channels to capture new market share, and expanding

its presence in Asia, Europe, Latin America and other international markets.

3

Wulfsohn will serve as Non-Executive Chairman of Valvoline following the separation, and

Sam Mitchell, currently Senior Vice President of Ashland and President of Valvoline, will

serve as CEO.

Transaction Details

Ashland will begin the process to separate its speciality chemicals and Valvoline businesses

while it finalises the transaction structure and obtains customary regulatory and other

approvals. The company intends for the separation, which is subject to final board approval

prior to completion, to be tax free for Ashland shareholders. Immediately following the

separation, Ashland shareholders will own shares of both the new Ashland and Valvoline.

Each company expects to target mid- to high-BB credit ratings and intends to pay regular

dividends consistent with providing attractive total returns to shareholders.

Source: Ashland, 22 September

AkzoNobel has

announced plans to

invest in its

Performance Coatings

business in Vietnam.

As well as doubling capacity at its powder

coatings facility in Dong Nai, the company

also intends to open a new office for

Performance Coatings in Ho Chi Minh City.

The new production line in Dong Nai will

be ready in November and will be

supported by a 20 percent increase in

workforce. In addition to serving the local

market, the expanded plant will also

supply customers across Southeast Asia,

India, Australia and New Zealand.

“Vietnam has proven to be a strategic

market for AkzoNobel in Southeast Asia

and we are strongly committed to

expanding our position,” said Alan Alex,

Business Manager for AkzoNobel's

Powder Coatings business in Southern

Asia. “With focused investment, we aim to

sustain our high double-digit growth in

the domestic market in Vietnam, as well

as Southern Asia overall.”

Commenting on the investment, Conrad

Keijzer, AkzoNobel's Executive Committee

member responsible for Performance

Coatings, added: “Vietnam is strongly

emerging as a manufacturing base in Asia,

which continues to be an attractive

growth market. These investments ensure

that we are well positioned to meet

customer demand going forward.”

AkzoNobel is the largest paints and

coatings company in Vietnam, with four

manufacturing locations producing both

decorative paints and performance

coatings, and employing more than 800

people.

AkzoNobel

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Other Akzo news

AkzoNobel is the exclusive partner of the

Architecture China 1000 Exhibition, which

has opened in Beijing.

Organised by celebrated independent

curator Fang Zhenning, the major

exhibition showcases 1,000 distinguished

architectural designs completed in China

between 2000 and 2015. The event also

offers AkzoNobel the opportunity to

highlight how architecture and design are

woven into the fabric of the company’s

global Human Cities initiative.

“China's rich and varied architectural

history is renowned all over the world,”

said AkzoNobel CEO Ton Büchner during

the opening ceremony. “This collection of

1,000 great works not only offers a

tantalising glimpse of what the future

holds in store, but also underlines the key

role that architects play in shaping our

cities and making them more human.”

He added that the exhibition held extra

significance because of AkzoNobel’s

involvement in a large number of the

projects on display. “We’re particularly

proud that our products featured in many

of these 1,000 projects, highlighting the

key role we play in the global buildings

and infrastructure sector. As a leading

player in these market segments, we

believe that a lot more can be done to

make cities more exciting, vibrant and

enjoyable. And architects can make a

major contribution.”

Commenting on the global influence of

architects, Dr. Lin Liangqi, President of

AkzoNobel China and Managing Director

of Decorative Paints, China and North

Asia, said: “In China, the speed and

magnitude of urbanisation are

tremendous, with 68 percent of the

population – that’s around a billion people

– expected to live in cities by 2030.

Architecture will play a pivotal role in

humanising urbanisation during the

course of this century, especially in China,

and AkzoNobel is poised to support this

process.”

Being staged at 798 Art Zone in Beijing,

the event also includes the China

Architecture Summit, where leading

Chinese architects, urban planners,

industry experts and academics will meet

to exchange ideas and share architectural

insights.

“This exhibition provides a bird’s eye view

of the evolution of China’s architectural

history during the early part of the 21st

century,” added Fang. “China has become

an arena for international architects to

experiment with their ideas and this event

will allow audiences to see for themselves

why Chinese architects in particular have

become truly world class.”

The exhibition runs until October 7.

Source: AkzoNobel, 22 September & 24

September

5

Emery Oleochemicals, the world’s leading natural-based

chemicals producer and largest oleochemicals manufacturer in

North America, has celebrated its 175th anniversary in

conjunction with the commercialisation of its $50 million Bio-based and Recycled Content

Polyols Plant.

The plant, which began construction in late 2013, makes its mark as the world’s first

industrial-scale facility capable of utilising scrap foam as feedstock to manufacture a new

range of sustainable polyols. Additionally, by leveraging Emery Oleochemicals’ proprietary

feedstock technology, the company is well-positioned to also provide performance bio-

based polyol solutions.

Combined, the bio-based and recycled content polyols create a wide-ranging solutions

portfolio suited for high-growth industries, such as automotive, furniture, major appliances,

construction and coatings, adhesives, sealants & elastomers (CASE). Offering industry

players sustainable products that can address energy efficiencies in buildings and reduce the

amount of scrap foam dumped into landfills, the new plant will also manufacture

renewable-based products for bio-lubricants, green polymers and bio-pesticides

applications.

“This is a strategically important investment for Emery Oleochemicals, allowing us to play a

leading role in the commercial production of bio-based chemicals in the USA,” said Jay

Taylor, Senior Vice President, Chief Manufacturing Officer and Regional Managing Director,

North America. “Accelerating our capabilities in producing sustainable solutions, this new

plant reinforces our commitment to providing innovative solutions that help our customers

meet changing market needs and increasing demands mainly in flexible and rigid foams, and

coatings, adhesives, sealants & elastomers (CASE) applications.”

In addition to the $50 million plant investment, Emery Oleochemicals has invested in an

expanded Technical Development Centre (TDC) that will serve as its global innovation hub

for the bio-polyols, bio-lubricants and bio-pesticides industries. It is expected to launch at

the end of 2015.

Douglas da Silva Rosa, Chief Technology Officer of Emery Oleochemicals, believes that

growing capabilities and on-the-ground technical presence enables the company to operate

with speed and agility, converting local insights into innovative and sustainable products.

“Our continued investments in research and innovation will expand our business in the area

of natural-based chemicals, allowing us to build a portfolio of differentiated products in the

marketplace and drive new growth opportunities. Creative solutions, such as the recycled

content polyols, will be the cornerstone to the success of our innovation pipeline,”

explained Silva Rosa.

Emery Oleochemicals

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Reflecting on the megatrends of rapid urbanisation, resource scarcity and climate change,

Emery Oleochemicals’ Group Chief Executive Officer Ramesh Kana emphasised, “This

investment allows us to push the boundaries of science and advance sustainable solutions

that transcend product performance and margin contributions. By ‘going beyond

specialties’, we look to enabling a better future by means of differentiated thinking. New

approaches in sustainable product stewardship are a major driver of innovation for a

resource-efficient way of life.”

Source: Emery Oleochemicals, 18 September

Flint Group is

expanding its

Sheetfed

production and distribution network in

Russia with the opening of a Low

Migration ink mixing station in its Moscow

facility.

“This investment reflects our commitment

to the Sheetfed printing industry and

especially to our folding carton customers.

It will complete our geographical footprint

and strengthen our local service by

offering state of the art local mixing

service, including conventional and UV

Low Migration spot colours,” Explains

Romain Boulot, VP Sales, Sheetfed EMEA

for Flint Group.

Mr. Boulot continues, “Our conventional

and UV Low Migration product portfolio

quality and consistency is well recognised;

we are committed to providing the best

supply service across all regions.”

In Moscow, this expansion has already

been completed with the installation of a

low migration ink mixing station following

GMP guidelines and compliant to

European Printing Ink Association (EuPIA)

recommendations for food packaging

printing. This will enable Flint Group’s

Russian entity to support its local package

printing customers by optimising logistics

and improving lead times.

Development of the Moscow facility is yet

another step in Flint Group’s strategy to

grow in key markets, as well as a

commitment to providing optimal

performance and consistency of products

to its customers worldwide.

Source: Flint Group, 16 September

Flint Group

7

Following the overall review of the Group’s use of sales channels,

speciality chemicals company Perstorp is pleased to announce the

signing of a distributorship agreement between Perstorp Polyols Inc.

(Toledo, Ohio) and Nexeo Solutions, LLC (formerly Archway Sales, St. Louis).

As of September 2015, Nexeo Solutions will be responsible for distributing a wide range of

Perstorp’s speciality products, including:

• Capa™ caprolactones

• Charmor™ carbon sources for intumescent systems

• Alkoxylated polyol product lines

The distributorship agreement covers the Southeast, Ohio Valley and Central United States

regions, excluding the West Coast and Northeastern regions.

“We see a natural synergy between the performance offered by Perstorp’s speciality

product lines and the ability of Nexeo Solutions to bring that value to new and existing

customers. Nexeo Solutions will optimise the “solutions” component of our customer

offering,” Rob Magro, Perstorp’s Sales Director of Specialties and Solutions for the Americas

Region, said.

Source: Perstorp, 21 September

PPG Industries’

industrial coatings

business has

introduced a new

platform of liquid and

powder coatings systems for the

automotive parts and accessories industry

across Europe, the Middle East and Africa

(EMEA). The new platform reflects PPG’s

commitment to serve customers with a

complete and innovative product offering

and is backed by decades of experience in

this sector.

The platform is specially designed for

suspension systems manufacturers

seeking a supplier that can enable them to

increase performance and process

efficiency. It includes AQUACRON® water-

based one- and two-component liquid

coatings, as well as a selection of

ENVIROCRON® zinc-free primers and

epoxy or hybrid topcoats.

PPG is recognised amongst automotive

parts and accessories producers and car

manufacturers as a leading global

provider of coatings, sealants and

adhesives, and process solutions.

Perstorp

PPG

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“Through our work with leading

automotive manufacturers and Tier

suppliers, we have developed a strong

understanding of customer needs and

expectations,” said Jerome Lepers,

Product Manager, Liquid Coatings, PPG

EMEA.

“We not only meet or exceed our

customers’ product performance

requirements, we also enable

manufacturers or job coaters to make

their processes more efficient,” explained

Marco Galanzino, Product Manager,

Powder Coatings, PPG EMEA. “As a result,

our customers can achieve savings in a

sustainable way.”

As one of the world’s leading coatings

manufacturers, PPG offers a

comprehensive array of electrocoat, pre-

treatment, liquid and powder products for

automotive parts and accessories, making

PPG a coatings and process-solution

provider of choice for many

manufacturers.

Source: PPG, 17 September

Brenntag, the global market leader in chemical

distribution, has signed an agreement to acquire TAT

Group, a Singapore-based distributor for industrial chemicals. The company’s facilities in

Singapore cover supply chain requirements and value-added services including modern

blending, packaging, storage and logistics facilities. Via its subsidiaries in Singapore, South

Korea, Vietnam, Hong Kong and Indonesia, TAT offers its local and overseas customers a

broad product range of solvents and related products.

Steven Holland, CEO Brenntag Group: “TAT has a strong market position and reputation as

well as high coverage in South East Asia, Hong Kong and South Korea. The acquisition is a

significant complement and important investment into Brenntag’s geographic and strategic

position in Asia Pacific. TAT’s distribution network serves a broad customer base in the

coatings, pharmaceutical, plastics, electronics and other industries and will contribute to

further enhance Brenntag’s relationships with its Global Key Accounts as well as major

suppliers.”

“TAT manages one of the most attractive and well-located distribution sites in Singapore

with a large warehouse, modern blending and repackaging facilities, operating under HSE

standards that perfectly fit the high principles at Brenntag”, says Henri Nejade, Member of

the Management Board of Brenntag Group and responsible for Brenntag’s business in Asia

Pacific. In addition, Singapore is the preferred hub location being the second-largest port of

the world and offering access to the chemical industrial zone “Jurong Island”.

Brenntag

9

The business is expected to generate total sales of approximately EUR 145 million in the

financial year 2015. Closing of the transaction is expected in Q4 2015, subject to the

approval of shareholders of TAT’s holding company and certain other closing conditions.

Source: Brenntag, 18 September

MARINE AND PROTECTIVE COATINGS GLOBAL MARKET

IRL is pleased to present in-depth analysis of the top global markets for marine and protective coatings, covering market shares and prices in our analysis for the first time.

Building on our successful Overview of the Global Marine and Protective Coatings market, which was released in 2008, and our innovative country-by-country database of coatings market data, IRL is offering a detailed and comprehensive guide to these two interesting market sectors of the coatings industry.

The reports provide, for each key country covered (22 countries in total for marine coatings, and 21 countries for protective coatings), consumption estimates in both volume and value terms for marine and protective coatings, with 2014 as the base year and forecasts to 2019. In our two-tiered approach, top-level data is also available for the remaining countries covered in our global database (~100 countries).

NEW FROM IRL

All data in this report (historical trends and forecasts, prices, market shares and segmentations)

are now available in our unique online database that clients can subscribe to.

Please contact IRL for more details. NEW

!

10

IRL has identified the 70 leading companies in the following major country markets, providing market shares in metric tonnes for 2014 in each country. The geographic coverage includes the following countries: Germany, United Kingdom, Spain, Italy, France, Greece (marine only), Poland, Russia, Saudi Arabia, UAE, South Africa, Turkey, China, Japan, South Korea, India, Indonesia, USA, Canada, Mexico, Brazil and Argentina.

11

The information in the reports is based on a comprehensive programme of telephone interviews with key players in each country market, backed up by thorough secondary research and IRL’s in-house database of global paints and coatings market data.

For each in-depth country report, for both marine and protective coatings, the following market analysis is provided:

Market Volumes (Tonnes) & Values (€)

Market Sizes and Values by Resin Type (Epoxy, Polyurethane, Vinyl/Styrene/VAE, Pure Acrylic, Polyester, Alkyd, Nitrocellulose, Others)

Market Sizes and Values by Application System (Water-based and Solvent-based)

Market Shares by Volume (tonnes sold) of Leading Players

Market by End-Use Application: o Marine Coatings (New Build, Professional Maintenance/Shipyards and DIY/Leisure) o Protective Coatings (Civil Engineering, Industrial, Shipping Containers, Power

Generation and Machinery) o Protective Coatings (On-shore, Off-shore)

Distribution Channel Shares

Key Market Trends and Drivers

All research was undertaken between April and July 2015 from our offices in London, New Jersey,

New Delhi and Beijing. The research took the form of an extensive telephone interview programme

with senior executives at major coatings companies in each of the countries covered.

The information provided has been cross-checked and validated using other online information,

published statistical data and trade association data.

Country reports are priced individually, and will be available to purchase online at our website:

www.informationresearch.co.uk

The Global Marine and Protective Coatings Reports are also available as part of IRL’s Global online database system called Enterprise, which will from now on form a key part of its services to the paints and coatings industry and its affiliates.

IRL’s database provides a comprehensive and fast tool that enables clients to analyse all data available efficiently and to every desirable level of detail.

12

Trends, forecasts, values, market shares and technical segmentations are available in an online pivot table format.

Users can create data tables to their own designs and needs and compare data across different regions and countries.

For more information on this and our other reports, please contact Cathy Galbraith at: cgalbraith@brggroup.com

Coating Update by Email (CUBE) is a free weekly news digest of the latest business news and events in the global paints and coatings industry, and is published in-house by specialist coatings research company IRL.

Subscriptions: If you or your colleagues would like to subscribe to CUBE, please send an email along with your name, position and company to cube@brggroup.com with ‘SUBSCRIBE’ written in the subject field. Please add news@brggroup-chems.com to your safe senders list. If you no longer wish to receive CUBE, please send a blank email to cube@brggroup.com with ‘UNSUBSCRIBE’ written in the subject field.

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